Tekkorp Digital Acquisition said it received a notice from the Nasdaq that it is not in compliance with exchange listing rules for failing to file a timely annual report with the SEC.
The notice has no immediate impact on the listing of the SPAC’s securities, which will continue to trade. Under the Nasdaq Listing Rules, Tekkorp has 60 calendar days from the date of the notice to submit a plan to regain compliance. If Nasdaq accepts the plan, Nasdaq can grant the SPAC an exception of up to 180 calendar days from the due date of the Form 10-K, or until Oct. 12.
Tekkorp said it is currently evaluating the accounting treatment of its warrants based on guidance from the SEC issued last week. The SEC now expects SPACs to list warrants as liabilities on the balance sheet, requiring many blank-check companies to restate and refile their financial reports.
It is unclear whether Tekkorp’s delay in filing an annual report for 2020 is directly related to the SEC’s statements, which were released April 12. The SPAC received notice from the Nasdaq three days later. Read more.
